Planning for Retirement in Mid-Career

Mid-career tends to be when people start paying attention to their retirement plan. The good news is that as a member of the PSPP, you’re off to a good start, but your PSPP pension is just one piece of your retirement income. You need a retirement plan to make sure you’re saving enough. The last thing you want is to be preparing to retire only to realize you haven’t saved enough and you need to keep working.

Here’s what to focus on now to make sure you’re on track:

1. Review your retirement plan to determine if you’re on track to meet your retirement goals. If you don’t have a plan, create one now. Think about things like:
   • When do you want to retire? You can retire with an unreduced pension at 65 but the Plan also allows you to retire early if you meet the criteria. Understanding whether retiring early will provide you the income you need is critical.
   • How much retirement income do you think you’ll have coming in? The PSPP is just one piece of your retirement income. Do you know what you're entitled to receive from CPP and OAS? What about other investments or savings such as your RRSPs or TFSAs?
   • Do you understand what your expenses will be?
     • Do you expect to have a mortgage or rent payments in retirement?
     • Will you still be paying for your kids' college or university costs?
     • Will you be supporting elderly parents or other family members?
     • Do you plan to travel a lot or stay closer to home?

   Tip: If you’ve only been in the PSPP for a few years and you weren’t previously in another plan/saving regularly through RRSPs, creating a retirement plan now is critical because it’s very likely that you’ll need other retirement income.

2. Do you have any past service you can purchase in the Plan? As you get closer to retirement, the cost is likely to go up, so consider purchasing it now.
   1. Have you taken an unpaid leave of absence you didn’t contribute for?
   2. Have you ever had a period of part time or contract employment where you didn’t contribute to the PSPP?
   3. Were you a member of another registered pension plan before you joined the PSPP?

   If you answered is "yes" to any of the above questions – contact us to discuss your options and get a buyback quote.

3. Book a 1-on-1 session with one of our Client Service Advisors to discuss your retirement plan. They can help you navigate issues like whether buying back service or retiring early makes sense for you.

Takeaways and advice

Putting a plan into place now will greatly assist you in preparing for a secure retirement. As your long-term and short-term goals begin to shift with your changing priorities, taking time to envision how you see yourself in retirement will help with your future planning. What are your passions? How do you want to spend your time?

1. Sign up for one of our mid-career workshops which helps you understand how your pension fits into your broader financial plan, including working through some financial planning exercises with our Advisors. To learn more and register for the next workshop, check out the Financial and Retirement Planning Workshops page.
2. Use our online Retirement Planner through your e-services account(opens in a new tab) to help you assess your financial picture in retirement to find out if you’re saving enough to meet your goals or if you need to make some adjustments. It offers a comprehensive snapshot of your overall retirement picture with an annual breakdown including your PSPP pension, CPP and OAS pensions, and personal savings. It also allows you to factor in your spouse’s expected retirement income to give you a detailed projection of your complete retirement picture.

Login to your e-services account(opens in a new tab) and start exploring My Retirement Planner now.